The Andhra Pradesh government (Ministry of Finance) launched the Pavala Vaddi MSME scheme. Aiming to provide interest subsidies on bank loans earned by self-help groups in the state. The scheme aims to lower the cost of starting new micro and small businesses in the state, particularly food processing businesses. This scheme covers all loans made by banks as part of the SHG Bank Linkage Program.

What are the Benefits of Pavala Vaddi MSME Scheme AP?
  • The interest rate charged by qualifying micro and small enterprises to the financial institution or banks on the term loan availed. It will be reimbursed to the concerned financial institution or bank on a half-yearly basis. With a maximum limit of 9% under the Pavala Vaddi scheme.
  • The Pavala Vaddi scheme offers benefits to self-help groups and MSMEs in the form of interest subsidies on bank loans.
  • Benefits will be available to qualifying beneficiaries for a duration of five years under this programme.
  • The scheme allocates the benefit in the form of interest repayment in excess of 3%. Irrespective of bank interest rates, and excludes penal interest, liquidated losses, and other payments made to the bank.
What are the Eligibility for Pavala Vaddi MSME Scheme AP?
  • Only qualifying new units will be granted assistance. If they repay their principal and interest loan payments on time and on budget.
  • New micro and small business units established in Andhra Pradesh other than the Municipal Corporation boundaries of Visakhapatnam, Vijayawada, and Hyderabad shall be eligible to avail the benefit of the scheme. 
What are the Documents needed for Pavala Vaddi MSME Scheme AP?
  • Photograph of the applicant
  • Aadhar card
  • Project reports/Business Plan
  • Registration no. of the concerned unit 
  • Utility/electricity bill
  • PAN Card

In the above list, a Business plan also known as a project report is a crucial document when applying for a bank loan. The bank uses this document to analyze the overall feasibility, risks, financial viability, and potential of a project. Also, a well-crafted and convincing project report increases the chances of loan approval. With Finline you can craft a compelling project report in less than 10 minutes. That too in your language. All public and private sector banks working in India accept our reports. Click to create your project report.

How to apply for the Pavala Vaddi Scheme?

Visit the following website to register and learn more about the application process of the scheme and then log in by selecting the Pavala Vaddi button after registration